If you’ve built credit underwriting models, you're familiar with the modeling metric called “AUC.” AUC is the primary metric used to...

FinRegLab, a nonprofit focused on innovations that advance responsibility and inclusiveness in the financial sector, has released the results of a broad research project entitled Explainability and Fairness in Machine Learning for Credit Underwriting (1). Noteworthy for its range of empirical testing and numerous collaborators, including many leading financial technology companies, the paper is a comprehensive review of the tools available to help lenders responsibly and comp

Make explainability the core of the process, not a feature of the model.